The value of Bognor Regis leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is less than eighty years
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Bognor Regis leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her first floor flat in Bognor Regis, Rhiannon started the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was concluded in November 2014. The freeholder’s costs were kept to an absolute minimum.
Last August we were approach by Mr and Mrs. U Rodríguez , who was assigned a lease of a studio apartment in Bognor Regis in November 1996. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Identical flats in Bognor Regis with an extended lease were valued about £275,000. The average ground rent payable was £65 collected annually. The lease finished on 4 September 2093. Given that there were 68 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.
Mr and Mrs. L Roberts owned a purpose-built apartment in Bognor Regis in June 2001. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Bognor Regis with 100 year plus lease were in the region of £213,600. The average amount of ground rent was £60 invoiced every twelve months. The lease ended on 23 January 2082. Considering the 57 years as a residual term we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.